I bought in at 60cents today after reading a commsec article,...

I bought in at 60cents today after reading a commsec article, and having a quick look at 20 and 50 day moving averages. This stock looks well underpriced, and the sell side is very weak at the moment.

This article from commsec:

CCV Cheap as Chips: CCV is now trading at value implying worst
possible legislation scenario
27/9/07 Last Traded: $0.57 Market Cap: $0.136b Sector: Cons Discret
Summary of
report dated
25/8/07
ACCUMULATE / MARKET PERFORM Valuation: $0.53 worst case
$1.32 best case
CommSec has upgraded its recommendation on Cash Converters International (CCV) from
REDUCE/ MARKET PERFORM to ACCUMULATE/ MARKET PERFORM. CCV’s current
share price reflects the worst payday lending legislation outcome possible in Australia.
CommSec’s worst case scenario valuation of CCV is $0.53. CommSec’s best case
scenario is $1.32 per share. At the time of this original report CCV was currently trading on
an estimated FY08 PE ratio of 7.8x and an estimated dividend yield of 9.4%. CommSec’s
price target remains $0.66. On 5 September CommSec conducted a sensitivity analysis on
CCV taking into account best case and worse case legislative risk scenarios. In the worst
case scenario QLD, NSW, SA and WA all introduce interest rate caps including fees and
enforce the legislation in January 2009. However the likelihood of the worst case scenario
occurring is low because: (1) Payday lenders can still make payday loans at current rates
by using the Federal Government’s Bills of Exchange Act 1909. The Federal Government
will be reluctant to transfer those powers to the States. (2) SA and WA have not yet
announced policy on payday lending. Both States may follow Victoria and introduce
favourable policy. (3) QLD may not be committed to an interest rate cap including fees.
Earlier this Month there was a portfolio reshuffle in QLD and now the Attorney General is in
charge of fair trading. Only Margaret Keech, the former Fair Trading Minister, was
‘committed’ to an interest rate cap. (4) The short time frame is not realistic. The QLD
Attorney General and the Federal Government will both look to delay making a decision on
payday lending because any decision will be controversial.